Chief Economic Adviser Arvind Subramanian on Thursday slammed the global credit rating agencies for not upgrading India despite clear improvement in its economic fundamentals, saying they are following "inconsistent" standards while rating India and China.
India has been placed in the lowest investment grade by these agencies which leads to higher cost of borrowing in the global markets due to investor risk perceptions associated with it.
"In recent years, rating agencies have maintained India's BBB- rating, notwithstanding clear improvements in our economic fundamentals (such as inflation, growth, and current account performance). At the same time, China's rating has actually been upgraded to AA-, even though its fundamentals have deteriorated," he said here.
Here is the full text of his speech:
Published Date: May 12, 2017 12:03 PM | Updated Date: May 12, 2017 12:03 PM